On December 31, 2020, American Bank enters into a debt restructuring agreement with Skysong Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $4,180,000 note receivable by the following modifications: 1. Reducing the principal obligation from $4,180,000 to $3,344,000. 2. Extending the maturity date from December 31, 2020, to January 1, 2024. 3. Reducing the interest rate from 12% to 10%. Skysong pays interest at the end of each year. On January 1, 2024, Skysong Company pays $3,344,000 in cash to American Bank.